Outsourcing | production EEECIEey © Why do some companies make luxury products abroi ad rather than at home? © Read the article and answer these questions. i ? 4 Which brands are mentioned? Do you ica we cout cas! is fom? 2 Which companies make all of their products in their own country be seen, particularly not always need to be Made in Europe 2038 SE cing By Jo Johnson, Fred Kapner and Richard McGregor 165 tue or not hat xury 8 ‘A brand is ; , and mt Almost every fashion label almost half of Burberry's comes from Europe t ee outside the tp superiuxury les at retail value will bemadetheretobethebest’ the consumes ani > op Nanas is efther already continue to be produced See Wenberg, Chit com ‘manufacturing in Asia or under Ticence in Asia, At ‘thinking of it. Coach, the US asthe same time however, Printemps Redoute, which the brand is = eee os ah a leat “Ente bua iad For luxury goods, brand classe example, Over the the roup's Europeanrmade not move Guccls production and no brand man’ i past five years it has lifted products, offshoreYet some in the 90 want be ae all its gross margins by Sanyo is now reacting to $5 industry recognise that between manu‘. ing 10 manufacturing solely in low- so this demand for a snob change may be round the location and the bra. rage cost markets In March 2002 alternative to the Burberry corner even for the super- Wrong! Xelosed its factory in Lares, products made in its ‘luxury brands. Patrizio a Puerto | Rien. tt, Bat tire eee ae ee From the Financia! “imes company-owned plant, and opening a flagship store in Prada, say's: “Made 415 outsources all its products, 35'Tokyo's Ginza, where it sells Italy" label is important but FINANCIAL TIivigS Burberry has many Asian Burberry products imported what we are really offering is licensing arrangements, In from Europe. a style, and style is an 2000 it decided to renew In interviews with the FT, _ expression of culture’ He ‘Sanyo's Japanese licence for { aA 0 | leather goods maker, is a Japanese consumers prefer controls Gucci, says it will damage it is a car’ sin | many executives say the top 6 therefore recognises that 20ten years, This means that «oluxury brands will continue qUality fashion items may ‘A Mother, baby and pushchair in Burberry, sii @ Which of these statements are true? Correct the false ones. 1 Coach no longer has a factory in Puerto Rico. 2 Coach, like many other companies, is outsourcing its products to reduce costs. 3 Some Japanese people choose to buy Burberry products made in Europe rather than in Japan, ‘4 Sanyo's store in Tokyo sells Burberry products made only in Asia. 5 According to Domenico De Sole, the best luxury products are made in japan 6 Gucci is planning to outsource some of its products. 7 Patrizio Bertelli believes that luxury fashion products should always be made in Europe. 8 Amitava Chattopadhyay says that companies need to pay careful attention to where they manufacture their products, Choose the best summary of the article. a) Most manufacturers of luxury brands do not wish to produce their goods in low-cost countries because they believe that it will damage their brand age. b) Most manufacturers of top brands now produce their goods in low-cost countries. Consumers no longer care about where the products are manufactured, ©) Asian consumers think that European luxut Current trend of making such goods in Asia these luxury brands. iy 8oods are of high quality. The could damage the reputation of D Vecadiary fe page 17 Scanned with CamScanner